* The European Union is expected soon to accuse multiple banks of attempted collusion in the setting of Euribor, according to people briefed on the probe.

Barclays Plc has already acknowledged trying to rig the rate, and other banks are likely to be pressed by regulators in the United States, United Kingdom and elsewhere into similar admissions, according to industry and regulatory officials.

* Hostess Brands Inc said it used wages that were supposed to help fund employee pensions for the company's operations as it sank toward bankruptcy.

* China posted weak foreign trade figures for November on Monday, showing that the country still faces external risks such as lower demand for Chinese goods, even as other data indicate that the country's growth has begun rebounding.

* An inspector general's report is bringing renewed scrutiny to the pay levels of hundreds of senior managers at Fannie Mae and Freddie Mac who earned more than $200,000 last year.

* Venezuela President Hugo Chavez asked his country for the first time to consider his successor as he announced a recurrence of his cancer and the need to fly to Cuba to undergo further surgery.

* Small banks in the United States are making a last-ditch attempt to persuade Congress to extend a crisis-era blanket guarantee on nearly $1.5 trillion in deposits before it expires at the end of the year.

FT

US AND UK UNVEIL FAILING BANKS PLAN

US and UK regulators will unveil the first cross-border plans to deal with failing global banks on Monday.

UK TOLD IT CANNOT PICK AND CHOOSE EU LAWS

A senior EU commissioner has insisted Britain can not simply pick and choose which European cross-border crimefighting powers it wants to adopt in the future.

PLAN FOR GLOBAL REGULATION OF WEB

An unexpected new proposal for international regulation of the Internet drew warnings over the weekend of a spread of online censorship.

BAKRIES DISPUTE DOCUMENTS IN BUMI PROBE

Documents used as the basis for an investigation into alleged financial irregularity at miningcompanies part-owned by Bumi were stolen, hacked, doctored or all three.

HEDGE FUNDS FALL OUT OF LOVE WITH EQUITIES

Investors have fallen so far out of love with stocks that assets in fixed income hedge funds are poised to overtake those in equity trading strategies.

BANK REGULATORS EDGE TOWARD 'PROTECTIONISM'

The UK and U.S. are taking radical steps to ensure they are protected if financial institutions from other countries fail in the future.

YPF IN SHALE PARTNERSHIP TALKS WITH STATOIL

YPF of Argentina is in talks with Norway's Statoil about a potential partnership as part of its $37 billion push to develop the Latin American country's massive energy reserves.

DE LA RUE'S BOE CONTRACT UNDER THREAT

De La Rue faces losing one of its most prestigious clients after the Bank of England launched a 1 billion pound tender for the future production of its banknotes.

BANKS PLAN TO MOVE 3,000 JOBS OUT OF CITY

Three global investment banks plan to move 3,000 City of London jobs to other UK cities and towns over the next few years.

PHILIPPINES BACK REARMING OF JAPAN

The Philippines would strongly support a rearmed Japan shorn of its pacifist constitution as a counterweight to the growing military assertiveness of China.

NYT

* Michael Bloomberg is weighing the wisdom of buying The Financial Times Group, which includes the paper and a half interest in The Economist, according to three people close to Bloomberg who spoke on the condition of anonymity.

* The conglomerate Ingersoll-Rand Plc plans to announce a number of measures aimed in part at appeasing the activist investor Nelson Peltz, including a spinoff of its security business, people briefed on the matter said Sunday night.

* AIG Inc agreed on Sunday to sell up to 90 percent of its extensive airplane leasing unit to a group of Chinese investors in a deal that valued the business at about $5.28 billion.

* Wanxiang Group, a large Chinese auto parts maker, won a high-stakes auction on Sunday for assets of A123 Systems Inc , the bankrupt American battery maker that was a centerpiece of the Obama administration's loan program for electric vehicles.

* The Federal Reserve is widely expected to announce on Wednesday that it will continue buying Treasury securities to stimulate growth in the new year.

* The nation's largest banks are facing a fresh torrent of lawsuits asserting that they sold shoddy mortgage securities that imploded during the financial crisis, potentially adding significantly to the tens of billions of dollars the banks have already paid to settle other cases.

* Yahoo Sports and NBC Sports are tying their Web sites loosely together in an arrangement meant to give NBC more traffic online and Yahoo more promotion on television.

Canada

CHINA SECURITIES JOURNAL

--China's fixed assets investment growth is expected to reach about 22 percent next year, and real estate investment growth may reach 15 percent, the State Information Center, a government think-tank, forecast.

SECURITIES TIMES

--Dalian Commodity Exchange is expected to launch coking coal futures soon, the newspaper reported. The contract is awaiting approval from the State Council, China's cabinet.

--A monk and his nephew in Sichuan province in southwest China have been detained for encouraging Tibetan monks to immolate themselves.

PEOPLE'S DAILY

--Beijing aims for rapid expansion of economic and technological development zones in the coming years, which means more than 500 billion yuan ($80.26 billion) of investment over the next three years.

China

THE GLOBE AND MAIL

* Anti-apartheid hero Nelson Mandela spent a second night in a military hospital Sunday as officials refused to say anything about his ailment or the medical tests he is undergoing.

Reports in the business section:

* The conservative government has focused relentlessly on resource development as key to Canada's economic prosperity, but with its new investment rules, Ottawa is risking slower growth in order to limit foreign-government control in the sector.

* Silvio Berlusconi's political ambush of Italian Prime Minister Mario Monti's technocrat government has rattled the country's bond market, threatening to push the euro zone's third-largest economy back to the forefront of the debt crisis.

NATIONAL POST

* The rising confidence and bellicosity of Hamas militants in the Gaza Strip, combined with rapidly deteriorating relations with Israel's would be peace partner in the West Bank, are raising jitters in Israel that a new Palestinian uprising could be near.

* Egypt's opposition said Sunday it will keep up protests against a referendum on a disputed draft constitution but stopped short of advocating either a boycott or a "no" vote less than a week before the ballot.

* Public elementary school teachers in the York Region are expected to conduct a one-day walkout on Thursday as part of a revolving, province wide protest of the provincial government's controversial Bill 115, a piece of legislation that gives the Liberals power to dictate contractual terms between Ontario teachers and local school boards, and end any strike or lockout at will.

FINANCIAL POST

* Canadian Prime Minister Stephen Harper said he will toughen investment rules for foreign state owned companies after approving bids by CNOOC Ltd and Petroliam Nasional Bhd .

Fly on the Wall 7:00 am Market Snapshot

ANALYST RESEARCH

Upgrades

Abercrombie & Fitch (ANF) upgraded to Outperform from Neutral at RW BairdAnadarko (APC) upgraded to Outperform from Neutral at RW BairdCarlisle (CSL) upgraded to Buy from Hold at KeyBancCincinnati Financial (CINF) upgraded to Neutral from Underperform at MacquarieCME Group (CME) downgraded to Sell from Neutral at GoldmanComtech (CMTL) upgraded to Overweight from Neutral at JPMorganIsle of Capri (ISLE) upgraded to Neutral from Underperform at Credit SuisseMDU Resources (MDU) upgraded to Buy from Neutral at CitigroupMobile Mini (MINI) upgraded to Buy from Hold at KeyBancPlexus (PLXS) upgraded to Neutral from Underperform at BofA/MerrillQR Energy (QRE) upgraded to Outperform from Neutral at Credit SuisseRobert Half (RHI) upgraded to Buy from Hold at Deutsche BankSwift Transportation (SWFT) upgraded to Buy from Hold at Dahlman RoseTripAdvisor (TRIP) upgraded to Buy from Hold at Deutsche BankUltra Petroleum (UPL) upgraded to Neutral from Underperform at Sterne AgeeWebster Financial (WBS) upgraded to Buy from Hold at Deutsche Bank

Downgrades

Apache (APA) downgraded to Hold from Buy at Deutsche BankFibria Celulose (FBR) downgraded to Sell from Neutral at CitigroupGrafTech (GTI) downgraded to Hold from Buy at JefferiesMcGraw-Hill (MHP) downgraded to Neutral from Buy at Lazard CapitalNoble Energy (NBL) downgraded to Neutral from Buy at Sterne AgeeOmnicom (OMC) downgraded to Hold from Buy at Deutsche BankPublicis (PUBGY) downgraded to Sell from Hold at Deutsche BankSM Energy (SM) downgraded to Hold from Buy at Deutsche BankU.S. Steel (X) downgraded to Underperform from Neutral at LongbowWPP PLC (WPPGY) downgraded to Hold from Buy at Deutsche Bank

Initiations

Best Buy (BBY) initiated with an Underperform at BofA/MerrillDuke Energy (DUK) initiated with an Overweight at Morgan StanleyLufkin (LUFK) initiated with a Market Perform at Wells FargoNexstar (NXST) initiated with an Outperform at Wells FargoQuanta Services (PWR) initiated with a Buy at Deutsche BankTeradyne (TER) initiated with a Buy at Needham

HOT STOCKS

Canada approved proposed acquisition of Nexen (NXY) by CNOOC (CEO)AIG (AIG) announced agreement to sell up to 90% of ILFCcomScore (SCOR): U.S. online holiday spending up 13% for first 37 days of shopping seasonGM's (GM) Opel to end car production in Bochum in 2016Yahoo (YHOO) and NBC Sports Group (CMCSA) announced content/promotional dealEricsson (ERIC) began negotiations with STMicroelectronics (STM) on ownership of ST-EricssonElbit Imaging (EMITF) announced the closing of GE's (GE) investment in InSightecNOOK Media (BKS) announced NOOK Simple Touch available for $79 Roche (RHHBY) filing triggered $4M milestone payment to Halozyme (HALO)Altair Nanotechnologies (ALTI) announced 1-for-6 reverse stock splitCohu (COHU) to acquire Imesca Semiconductor for $54.5M cash

U.S. consumer spending is showing signs of weakening as a number of factors, from high unemployment to the prospect of increased taxes, are threatening to sap consumers' spending power at a time when other sectors of the economy are likely too weak help, the Wall Street Journal reportsThe euro interbank offered rate is facing mounting attacks, and the EU is expected to soon accuse multiple banks of attempted collusion in the setting of Euribor, sources say, the Wall Street Journal reportsLegend Holdings, parent company of PC Lenovo Group (LNVGY), plans to list in China's A-share market sometime between 2014 and 2016, the firm's chairman says, according to China Business, Reuters reportsWith talk of the U.S. economy going over the "fiscal cliff," investors' collective shrug marks a stark change from how they had behaved in the two weeks after the presidential election, when the looming budget crisis caused wild swings in stock prices. The S&P 500 index has nearly retraced the 5.3% slide it suffered in the first seven sessions after the vote. Some of the rebound reflects market confidence that a short-term deal will be reached, or that investors realize they are looking at a gentle slope instead, Reuters reportsGoogle (GOOG) avoided about $2B in worldwide income taxes in 2011 by shifting $9.8 in revenues into a Bermuda shell company, nearly double the total from three years before, filings show, Bloomberg reports.